Handy-size Bulk Carrier Market: Tonnage Shortage Pushes Up Rates

The NCSA-USG area remains short of tonnage: a 34,000 dwt bulk ship is well-linked to US$ 15,000 daily for a short period of 3-5 months, reports BMTI in its latest 'Handy Bulk Market Viewpoint'.

Owners of a similar size of tonnage were seeing US$ 24,000 daily for a trip to Europe. A range of US$ 20,000 daily from NCSA via the USG to the Continent from owners of a 36,000 dwt was rebuffed by charterers as being too expensive.

From the NCSA, undisclosed charterers were chasing a 35,000dwt for short period at US$ 13,500, which was about US$ 2,000 short of the owner's ideas. If you want to fix a 60,000dwt from the USG to the East, be prepared to face US$33,000, say BMTI.

Perky activity in the East has resulted into some very decent fixtures for Handysize tonnage. A 35,000dwt has been taken for a quick Australian round voyage at US$13,500 daily with delivery in Indonesia.

From China to Southeast Asia, owners of a 28,000 dwt have been firing rates at charterers in the region of US$ 9,000 daily. Rice charterers are still far apart from owners' ideas for a 25,000mt cargo from Sacramento (200,000 disb) to Turkish Med. They started at US$ 55/mt, increased their ideas to US$ 62/mt, now talking US$ 65/mt whilst owners didn't budge a cent from their initial idea of US$ 72/mt. In the WCI-PG region, pressed for tonnage, a 55,000 dwt was bid US$ 17,000 for 15 days WCI-PG trading.

The Black Sea market is just about holding steady, but owners report on more complicated talks with charterers trying to fix lower levels. A 57,000 dwt is rumoured, say BMTI, as fixed at around US$ 20,000 daily to the East.

Covering Handysize cargoes to India remains a mammoth task for charterers who prefer to wait for the second half of December when many owners will start scrambling to cover their ships over the Christmas period and beyond and are expected to eventually offer acceptable compromises to charterers. Petcoke charterers are trading a vessel for 35,000 mt from South Spain to USG at around US$ 19/mt.

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